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Non-Tech : Iomega Thread without Iomega -- Ignore unavailable to you. Want to Upgrade?

To: sheila rothstein who wrote (894)	8/5/1998 4:46:00 PM
From: Hunter Vann	Read Replies (1) \| Respond to of 10072

Message 5377574 And I made fun of his QGLY investment! He's outdone himself here...

To: sheila rothstein who wrote (894)	8/5/1998 6:57:00 PM
From: Ken Pomaranski	Read Replies (2) \| Respond to of 10072

SR: First, I apologize for the 'condesending' post. I was out of line. My point was not to say that I have more knowledge than anyone else (because I do NOT, I give that title to Mike Cooley). It was to say that yes, I am an 'investor' in the stock, not a 'manipulator' and I am NOT at all trying to trash the stock. I really am trying to make conversion here, because I want to play this one back up again.. If that occurs. I need to think more before I post. I come across as brash, no doubt about it. Now, about my two items: (top line growth & CLIK) IMO: TOP LINE GROWTH: Jaz, Ditto are falling away. Iomega relies more and more on ZIP. If they weren't a one product company before, they sure are now. OK, so ZIP is it. Now, what is Iomega's strategy going forward?? This is were I have the problem. Iomega is focusing more and more on managing costs rather than expanding the market. This is what bothers me: They do NOT have sufficient resources to make this product really work. They can't market, and they gave up the retail segment. They are hurting for money big time. They are getting defensive because they can't affort the aggressive approach. (They tried this, and failed). This is NOT a growth company anymore. It is a company struggling to survive. (not apparent yet, but 3 more quarters.. who knows?) CLIK: Too much of a gamble. I'd rather see this product hit first, THEN I'll invest. Remember, it is MUCH, MUCH more than just releasing the product. They need to create MONSTER demand for this device to make up for the failure of Jaz, and for the ultimate ZIP slowdown. For Iomega to get to 20 again, this device needs to double current revenues. How can this happen? How can they sell that many devices? What is the Tie ratio for this market? What would it take for me to invest again? Demonstrated return of TOP LINE growth. CLIK! revenues of over 150m per quarter. ZIP line MUST become profitable again. (use as a cash cow for 'real' products. Not a cash sink..) Simple as that! Is it worth a hold? Ask yourself this question: If you did research and found company XYZ trading at 4 7/8, flat revenues, bleeding cash, losing money, but had a 'wildcard product' as yet unproven would you buy? Or would you buy a company (called, for example, LU) with a strong balance sheet, increasing revenues, increasing top line, strong market presence, with a huge, known future? Fact is, there is alot of greed going on here. You're afraid you are going to miss a few points upward move. IN FACT, you are so afraid of this, you would rather watch the stock and your money go to zero than miss two upward points in the stock. Tell me that isn't true! I don't care if I buy this at 10 or 20. If the risk is low, I'll sacrifice the difference from 5. Good luck!! kp PS: look at some LU long term (jan 1999 or later), deep in the money calls. Looks very good. writing calls against these works great too!! about the market: I can't worry about it. I just need to make sure that if it drops 20% tommorrow, I'll survive and have the ability to play it back up. I do NOT want to be in a position where a market correction takes me out for good. (I'll write well in the money calls for defense, or buy S&P500 puts. Cheap protection for the ability to stay in the game!!!)